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2021 SUSTAINABILITY REPORT

HORIZON GLOBAL CORPORATION

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Horizon Global – Sustainability Report

REPORT CONTENTS
A MESSAGE FROM HORIZON GLOBAL’S CEO ................................................................ 5
HORIZON GLOBAL AT A GLANCE ...................................................................................... 6
OUR MISSION, VISION, AND VALUES ................................................................................. 8
OUR ESG STRATEGY................................................................................................................ 9
ESG ROADMAP......................................................................................................................... 10
ENVIRONMENT ........................................................................................................................ 11
CORPORATE ENVIRONMENTAL POLICY ....................................................................... 12
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)– ISO 14001 ................................ 13
GREEN RECOVERY PLAN..................................................................................................... 14
CO2 Emissions ........................................................................................................................ 15
Energy Reduction Activities at Our Facilities ..................................................................... 16
WATER USE............................................................................................................................... 18
COMPANY RECYCLING ........................................................................................................ 19
SOCIAL ....................................................................................................................................... 20
OUR PEOPLE............................................................................................................................. 21
Recognizing Talent and Encouraging People ...................................................................... 21
Recognizing Long-Timers ..................................................................................................... 22
Employee Training, Education, and Development ............................................................. 23
Talent Acquisition .................................................................................................................. 23
Performance and Career Development Reviews ................................................................ 24
Benefits at a Glance ............................................................................................................... 24
Remote Work ......................................................................................................................... 25
DIVERSITY, EQUITY, AND INCLUSION ............................................................................ 25
Encouraging Women at Horizon .......................................................................................... 26
Female Board Representation .............................................................................................. 27
Women @ Horizon ................................................................................................................ 27
COMMITMENT TO ETHICS .................................................................................................. 28
Ethics Hotline ......................................................................................................................... 28
Freedom of Association ......................................................................................................... 28

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EMPLOYEE HEALTH & SAFETY ........................................................................................ 29


Safety of Employees ............................................................................................................... 29
Employee Training on Health and Safety............................................................................ 29
Safe Walk Areas ..................................................................................................................... 29
Enhancing Facilities with Lean Manufacturing Improvements........................................ 31
Sanitary Security Protocol Compliance with IMSS Standard .......................................... 32
Active Breaks at Work .......................................................................................................... 32
Covid-19 .................................................................................................................................. 32
CONTINUOUS IMPROVEMENT ........................................................................................... 33
Improvements at Facilities Using 5S Methodology............................................................. 33
Process Improvements ........................................................................................................... 34
Communication and Information Sharing .......................................................................... 35
COMMUNITY ENGAGEMENT .............................................................................................. 36
Helping Hand for Students and Parents – Engagement with Varsity Tutors .................. 36
Adopt A Family ...................................................................................................................... 36
Helping Hand to Our Neighbors at Essential Times .......................................................... 36
Memberships and Organizations ......................................................................................... 37
SUPPLY CHAIN SUSTAINABILITY ..................................................................................... 38
ETHICAL SOURCING.............................................................................................................. 39
Commitment to Source Locally ............................................................................................ 40
Ethical Labor Standards – Human Rights Risks ................................................................ 40
Conflict Minerals ................................................................................................................... 40
Anti-Corruption ..................................................................................................................... 41
PRODUCT QUALITY & SAFETY .......................................................................................... 41
Standards Implementation.................................................................................................... 42
Customer Health and Safety ................................................................................................. 42
Marketing and Labelling....................................................................................................... 43
Employees Training on Best Work Practices ...................................................................... 43
Supply Chain Safety Standards ............................................................................................ 44

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INFORMATION SECURITY ................................................................................................... 45


Customer Privacy................................................................................................................... 45
Identifying Risks .................................................................................................................... 45
Data Integrity ......................................................................................................................... 45
STAKEHOLDER ENGAGEMENT ......................................................................................... 46
GOVERNANCE .......................................................................................................................... 47
OUR BOARD OF DIRECTORS ............................................................................................... 48
RISK MANAGEMENT.............................................................................................................. 49
DOCUMENT MAPPING ........................................................................................................... 50
ABOUT THIS REPORT ............................................................................................................ 54
SAFE HARBOR STATEMENT................................................................................................ 55

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Horizon Global – Sustainability Report

A MESSAGE FROM HORIZON GLOBAL’S CEO

“Don’t Underestimate What We Can Achieve as The Horizon Team,


No Barriers. No Limits.”

Horizon Global Corporation has a tremendous responsibility to all our stakeholders – from our
employees to our customers and suppliers to those living in the communities in which we do
business. Our daily actions, and the important decisions we make, need to be done in an
environmentally and socially conscious way. At the end of the day, it comes down to fostering and
sustaining a culture of doing the right thing.
As a leader in our industry, we are committed to meeting the performance needs of end users,
while striving to maintain the highest standards and product quality. We stand by our Company’s
vision of “enriching lives through great products” and aim to work with integrity while producing
best-in-class products. This report details activities taken to continuously improve our decisions
surrounding environmental, social, and governance issues.
Horizon Global’s approach to sustainability is an integral part of our corporate culture. Our
Mission, Vision, and Values reflect our ambition to be a socially-responsibility organization
committed to respect, integrity, and accountability.
While many of the activities detailed in the Sustainability Report are macro in scope, I’d like to
share with you a few of the specific initiatives we supported during 2020. As the global pandemic
impacted all aspects of life, it was more important than ever to help our employees and our
community. We were able to support the education of our employees’ children through various
tutoring programs, as our children transitioned to virtual and hybrid learning environments.
Horizon Global also partnered with Volunteers of America Michigan for its Adopt a Family 2020
Campaign to provide an enhanced holiday experience for those in need. We are proud of these
efforts, and we will continue to find ways to assist both our employees and the communities in
which we do business.
It is an honor and privilege to be leading this Company, and I want to thank our employees,
customers, suppliers, shareholders, and other key stakeholders as we continue moving forward
with our collective goals. We are proud to present you with our 2021 Sustainability Report.
Sincerely,
Terrence G. Gohl
Chief Executive Officer

Visit our previous sustainability report


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Horizon Global – Sustainability Report

HORIZON GLOBAL AT A GLANCE


Horizon Global Corporation, which we refer to in this Sustainability Report (this “Report”) as
“Horizon,” “Horizon Global,” “we” or the “Company,” became an independent, publicly-traded
company following a spin-off from TriMas Corporation on June 30, 2015. The Company’s
common stock began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol
“HZN” on July 1, 2015.
We are a leading designer, manufacturer, and distributor of a wide variety of high-quality, custom-
engineered towing, trailering, and cargo management products and other related accessories on a
global basis, serving the automotive original equipment manufacturers (“automotive OEMs”) and
automotive original equipment servicers (“automotive OESs”) (collectively “OEs”), industrial,
aftermarket, retail, and e-commerce channels.
The Company groups its business into operating segments generally by the region in which sales
and manufacturing efforts are focused. The Company has two operating segments – Horizon
Americas and Horizon Europe Africa. Horizon Americas primarily operates in the United States,
Mexico, and Canada, and is generally a leader in towing and trailering-related products sold
through the OE, industrial, aftermarket, retail, and e-commerce channels. Horizon Europe Africa
focuses its sales and manufacturing efforts throughout Europe and South Africa. Horizon Europe
Africa operates primarily in Germany, France, the United Kingdom, Romania, and South Africa.
We believe Horizon Europe Africa is a leader in towing related products sold primarily through
OE and aftermarket channels in the regions where it operates.
Our products are used in two primary categories across the world: commercial applications, or
“Work,” and recreational activities, or “Play.” Some of the markets in our Work category include
agricultural, automotive, construction, fleet, industrial, marine, military, and municipalities. Some
of the markets in our Play category include equestrian, power sports, recreational vehicle, specialty
automotive, truck accessory, and other specialty towing applications. We believe that the primary
brands we offer are among the most recognized in the markets we serve and are known for quality,
safety, and performance.
Our products reach end consumers through multiple sales channels which we categorize as
follows:
• Automotive OEM and automotive OES: The automotive OEM sales channel represents sales
to automotive vehicle manufacturers while automotive OES primarily represents sales to
automotive vehicle dealerships. We primarily sell our towing products to the OEs. This product
category includes devices and accessories installed on a tow-vehicle for the purpose of
attaching a trailer, camper, etc., such as hitches/tow bars, fifth wheels, gooseneck hitches,
weight distribution systems, brake controls, wiring harnesses, draw bars, ball mounts,
crossbars, security, and other towing accessories.
• Industrial: This sales channel represents sales to non-automotive manufacturers and dealers of
agricultural equipment, trailers, and other custom assemblies. We primarily sell our trailering
products to the industrial sales channel. This product category includes control devices and
components of the trailer itself, such as brake controls, jacks, winches, couplers, interior and
exterior vehicle lighting, and brake replacement parts.
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• Aftermarket: This sales channel represents sales to automotive installers and warehouse
distributors. In addition to selling our towing and trailering products to the aftermarket sales
channel, we also sell our cargo management and “other” products to this sales channel. The
cargo management product category includes a wide variety of products used to facilitate the
transportation of various forms of cargo. Examples of these products are bike racks, roof cross
bar systems, cargo carriers, luggage boxes, car interior protective products, loading ramps, and
interior travel organizers. The “other” product category includes a diverse range of items in
our portfolio that do not fit into towing, trailering, or cargo management categories. Examples
of these products include tubular push bars, side steps, sports bars, skid plates, and oil pans.
• Retail: This sales channel represents sales to direct-to-consumer retailers, such as traditional
brick and mortar merchants. While we offer most of our products to the retail sales channel,
we primarily focus on towing and cargo management products in this sales channel.
• E-commerce: This sales channel represents sales to direct-to-consumer retailers who utilize the
Internet to purchase the Company’s products. Like the retail sales channel, we offer a majority
of our products to the e-commerce sales channel, with a focus on towing and cargo
management products.
We have positioned our product portfolio to create a variety of options based on price-point,
ranging from entry-level to premium-level products across most of our markets. We believe the
brands we offer have significant customer recognition, with the three most significant being
Reese®, Draw-Tite®, and Westfalia®. We believe all three have substantial market share and
have been leading brands in the towing market for over 50 years. These brands provide the
foundation of our market position based on worldwide commercial and consumer acceptance. We
also maintain a portfolio of recognized brands that include Bulldog®, Fulton®, Reese Secure™,
Reese Explorer™, Reese Power Sports, Reese Towpower™, ROLA®, Tekonsha®, WesBarg®,
and Witter Towbar Systems.

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Horizon Global – Sustainability Report

OUR MISSION, VISION, AND VALUES


We are committed to maintaining a strong reputation in the market, workplace, and community.
This requires pursuing the highest industry standards and remaining focused on our mission –
enriching lives through great products while supporting our employees in the development of
innovative technology, ultimately creating shareholder value. In pursuing our mission, we
empower people across the globe to LIVE, WORK, PLAY.

Socially Responsible
We speak up for what is right and report wrongdoing when we see it. We accept
responsibility for our actions as individuals, co-workers, and as a company. We
do not retaliate against those who try to do the right thing by asking questions
and raising concerns.

Respectful & Open Team


We respect our co-workers, placing value upon their contributions and opinions.
We listen carefully when others speak, maintain fairness in our workplace and
in our relationships.

Data & Results Driven


We focus on achieving results, but this goes beyond just the bottom line. The
results we seek are those which positively impact the lives of our employees,
customers, partners, and community.

Integrity & Accountability


Integrity is at the heart of everything we do. We are honest, ethical, and
transparent because trust is the foundation of our relationships with customers,
communities, stakeholders, and each other.

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OUR ESG STRATEGY


This Report reflects Horizon Global’s commitment to sustainability and, specifically, the actions
we are taking to conduct business in accordance with environmental, social, and governance
(“ESG”) best practices.
Our ESG strategy is fully integrated into our culture and future growth. Our ESG strategy is
designed to benefit our stakeholders within the Company and beyond to the communities where
we LIVE, WORK, AND PLAY. Its success is highly dependent on our commitment to integrity,
upon building a respectful and open team, and providing them with a healthy and safe work
environment.
Our organization is steadfast in protecting natural resources, promoting environmental
stewardship, and implementing sustainable business practices. We recognize that proportional
action to address our environmental impact is both a business imperative and the right thing to do.
We have aligned our business practices to the United Nations Sustainability Development Goals
(“SDGs”) so that we commit to high-priority, specific, actionable SDGs and metrics. We strive to
continuously reduce our impact on the environment in all aspects of operations.
Furthermore, to maintain regular progress while meeting standards and regulations, we formed a
dedicated Compliance Council. The Compliance Council leverages global leadership, policies,
procedures, and education to establish and support a pragmatic, operations’ focused compliance
program for the Company and its employees, and focuses on various aspects of compliance,
including, but not limited to, the following:
1. ESG
2. Data Privacy and Records
3. Product Quality and Compliance
4. Management Systems
The Compliance Council was established in first quarter 2021 and consists of representatives from
all key functional areas, including the Company’s Chief Executive Officer. The Company’s Chief
Compliance Officer is the chairperson of the Compliance Council and is responsible for leadership
of the Compliance Council, including the determination (with input from Compliance Council
members) of the agenda for Compliance Council meetings, presiding over Compliance Council
meetings, and reporting to the Audit Committee of the Company’s Board of the Directors.
Membership of the Compliance Council is reviewed on an annual basis.

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As an organization, as of the date of this Report, ESG efforts apply to our internal and external
stakeholders as follows:
Strategies and Applicability
Internal External
Environmental X Suppliers
Energy X ---
Water usage X ---
Climate – Emissions X ---
Product Quality X Customers, Suppliers
Sustainability in Supply Chain X Suppliers
Diversity X ---
Local Community Engagement X ---
Working Environment X Suppliers
Employee Development X ---
Health & Safety X Suppliers

--- Information not available for this Report


ESG ROADMAP
Horizon’s ESG strategy focuses on the environment, social improvements, and supply chain
sustainability as set forth in this Report as follows:
ENVIRONMENT SOCIAL SUPPLY CHAIN
IMPROVEMENTS SUSTAINABILITY
• Corporate • Our People • Ethical Sourcing
Environmental Policy • Diversity, Equity, and • Product Quality &
• Environmental Inclusion Safety
Management System • Commitment to Ethics • Information Security
• Green Recovery Plan • Employee Health & • Stakeholder
• Water Use Safety Engagement
• Company Recycling • Continuous
Improvement
• Community
Engagement

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ENVIRONMENT

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Horizon Global plays an important role in bringing customers closer to the environment. As a
result – and because of our commitment to fostering and sustaining a culture of doing the right
thing – we view the preservation of the environment as a top priority. As an organization, we are
seeking to reduce our environmental impact by implementing best practices across our global
facilities.
CORPORATE ENVIRONMENTAL POLICY
The Horizon Global Corporate Environmental Policy defines the expectations and requirements
for all activities that affect Horizon Global’s environmental impact. As part of this policy, Horizon
Global is dedicated to:
• Implementing and maintaining an Environmental Management System (i.e., ISO 14001)
at all facilities where appropriate to provide a framework for monitoring and evaluating
environmental performance.
• Continuously improving environmental performance through the establishment of
environmental objectives and other key metrics.
• Ensuring compliance with our commitments to customs and all environmental laws and
regulations that apply to business operations and the manufacture, distribution, and sale of
products through monitoring and auditing programs.
• Utilizing technology, behaviors, and engineering practices to reduce environmental risks
and impacts on our operations.
• Incorporating pollution prevention practices to properly control, minimize, or eliminate
regulated substances from water discharges, air emissions, and solid waste disposal.
• Reducing waste through source reduction, re-use, and cost-effective recycling programs.
• Fostering open communication with employees, through training, direction, and
encouragement, to be conscious of the potential environmental impact of their actions.
• Directing employees to act always in accordance with the policy and to implement
appropriate solutions to reduce waste and improve efficiencies.

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ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)– ISO 14001


As part of our commitment to the environment, Horizon Global has implemented and maintains
an Environmental Management System (ISO 14001) at various facilities. Our EMS standard (ISO
14001) specifies the requirements for an environmental management system, allows the facility to
manage environmental responsibilities in a systematic, thoughtful manner, and provides a
framework for monitoring and evaluating environmental performance (e.g., Carbon Dioxide
emission, Waste & Pollution Reduction, etc.). As part of the evaluation process, we have a robust
and effective monitoring system with annual audits, performed by a third-party organization,
which ultimately drives continuous improvement.
Our EMS also helps us to ensure we are compliant with environmental laws and regulations across
the Globe.
In the Americas, our two manufacturing facilities (both located in Reynosa, Mexico) are EMS ISO
14001 certified; and in Europe-Africa four manufacturing facilities are EMS ISO 14001 certified
– Hartha, Germany, Rheda-Wiedenbruck, Germany, Brasov, Romania, and Pretoria, South Africa.

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GREEN RECOVERY PLAN


Carbon dioxide (CO2) and other Greenhouse Gas (GHG) emissions intensify global warming and
climate change. As an organization, we are constantly striving for the best ways to reduce
emissions from our business operations. While the COVID-19 pandemic adversely affected
communities around the world, it also caused a reduction in global CO2 emissions. Much of this
reduction could be attributed to the decrease in transportation as many employers transitioned to a
work-from-home structure to continue with daily operations. This shift reduced the consumption
of fossil fuels and thereby decreased the total emissions released into the atmosphere.
As employees across the globe attempt to find a healthy work-life-balance, for many individuals,
this includes the ability to work from home. In a continuously changing work environment and
with the availability of advanced technology that allows us to stay connected, the necessity for
potentially long commutes and full days at the office is diminishing. The advantages of working
from home are far greater than just meeting workplace preferences. Remote work promotes
ecological sustainability, improves gender equality, and reduces the wealth imbalance between
urban and rural communities. As a result of the pandemic, Horizon Global required administrative
and non-essential employees to work remotely. And, even as many other companies are
contemplating a return-to-the-office plan, Horizon Global decided early and promptly to allow,
and encourage, employees in non-essential roles to continue to work from home for the foreseeable
future.

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CO2 Emissions
2020 CO2 emission by facility are set forth below.

Global CO2 Emissions by Facility – 2020


(based on electricity usage)*
7000
Americas Region Europe-Africa Region
6000
5000
4000
Tons

3000
2000
1000
0
Itaquaqucetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)

*Calculation based on a common emissions factor and electricity consumption.

Three-year historical data is available for our primary manufacturing locations – Reynosa, Mexico
Metals, Reynosa, Mexico Electrical, Hartha, Germany, and Rheda, Germany. Our initial efforts
have focused on reducing CO2 emissions at each of these facilities. And, as part of these efforts,
CO2 emissions decreased by 11% for these facilities, while at the same time production quantity
increased. For example, at our Reynosa, Mexico Metals facility, hitch production quantity
increased by over 29% from 2018 to 2020. We will be expanding our efforts and data collection
capabilities to other facilities in the future. In particular, as part of our commitment to improving
the global ecosystem, Horizon Global strives to reduce CO2 emissions by ≥5% by 2025.

CO2 Emission by Year*


(based on all CO2 impact factors)
10000

8000

6000
Tons

4000

2000

0
Reynosa Electrical Reynosa Metals Hartha Rheda
(Mexico) (Mexico) (Germany) (Germany)
2018 2019 2020

*Calculations are made using location specific emission factors.


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Energy Reduction Activities at Our Facilities


As part of our efforts to minimize our CO2 emissions, we are committed to reducing our electricity
consumption. We have set a goal to reduce electricity consumption by ≥5% by 2025. In
conjunction with implementing these reduction activities, we continue to seek out renewable,
alternative sources of energy.
Below are some recent achievements:
• Reynosa, Mexico Metals Facility: In 2020, our Reynosa, Mexico Metals facility switched
from traditional incandescent lightbulbs to majority LED lights, significantly decreasing
electricity consumption.
• Efficiency: Manufacturing and operational improvements have led to an increase in energy
consumption efficiency. Our initial focus has been on our Reynosa, Mexico Metals facility,
one of our primary production facilities. At this location, from 2018 to 2020, production of
one of our primary products – hitches – has steadily increased without the use of additional
electricity consumption. The quantity of hitches increased by approximately 29% from
2018 to 2020 while electricity consumption decreased by almost 2%. This increase in
production was possible even with a three-month shutdown due the COVID-19 pandemic
(2019-2020 electricity consumption decreased by almost 1.7%). And as noted above,
globally, production quantity increased from 2018 to 2020, which occurred without
additional electricity consumption.

Electricity Consumption (Global)


45
GWh

30
2018 2019 2020

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Electricity Consumption by Facility*


15
Americas Region Europe-Africa Region

10
GWh

0
Itaquaqucetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)

2018 2019 2020

The efficiency improvements made at our Reynosa, Mexico Metals facility have proven to be
successful at reducing electricity consumption. Similar implementation and continuous
improvements are to be applied to other facilities in the future.

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WATER USE
Population increase across the world has caused rising demand for water. The adverse effects of
climate change have resulted in, and will continue to cause, water stress and the desertification of
many areas, forcing industries to decrease consumption and reduce any risk of water pollution with
their wastewater. At Horizon Global, we are committed to reducing water withdrawal and
counteract the scarcity of water.
Horizon Global has begun to reduce water withdrawal and is continuously working to take
noticeable, impactful long-term steps. As noted above, aggregate production volume increased
from 2018 to 2020; at the same time, water withdrawal decreased from 96,094 m3 to 83,391 m3.

Water Withdrawal (Global)


125000
100000
m3

75000
50000
25000
0
2018 2019 2020

Water Withdrawal By Facility


70000
Americas Region Europe-Africa Region
60000

50000

40000
m3

30000

20000

10000

0
Itaquaquecetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)
2018 2019 2020

The major sources of water for our facilities are local municipalities, with our Romania facility
obtaining water from Local Industrial Parc well water.
In addition to the above, our facilities do not dispose of any wastewater and/or byproducts into
local bodies of water. Finally, extensive financial and operational resources have been allocated to
focus on wastewater processing initiatives at one of our highest-impact facilities – Reynosa,
Mexico Metals. Full effects will be monitored and maintained as the system becomes fully
operational in the third and fourth quarters of 2021.

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COMPANY RECYCLING
As an organization, we believe recycling is a critically important action to preserve our
environment. Accordingly, we have implemented appropriate waste recycling procedures,
including for example:
1. Paper products used on-site are shredded and recycled as appropriate
2. Pallets are recycled or reused
3. All packaging materials and cardboards are recycled by third-party companies
4. Waste oils that are considered hazardous are sent to waste treatment facilities for proper
processing
5. Our Reynosa, Mexico Metals facility has initiated a water treatment activity as part of a
key manufacturing process

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SOCIAL

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OUR PEOPLE
Horizon Global’s dedicated workforce is the primary driver of the Company’s performance. Our
recent growth and positive performance are reflective of the contributions of each and every one
of our employees. We have a work environment that fosters open and honest communication,
enables all employees to make outstanding contributions, and allows everyone to develop to their
full potential in a safe, healthy, and positive environment.
The Company is steered by a strong management team with extensive industry experience, which
is deeply committed to the professional development of each employee. The Company’s success
depends upon the success of our employees and vice versa.
Recognizing Talent and Encouraging People
First and foremost – we recognize and encourage the talent within our team. We often share
globally, and on our internal website, the notable achievements, and contributions our employees
make to our organization.

One of our Sr. Product Design


Engineers was recognized for
his outstanding contribution to
his work, delivering 49 projects
in a month.

We also have
an employee
Spotlight
Story each
month.

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Recognizing Long-Timers
Beth Shelp and Roberta Lyons – 37 Years of Service!
Beth Shelp started working with the Company in 1984 at a Draw-
Tite®, facility in Canton, Michigan. Beth was the Master Planning
Manager until the facility was closed in 2002. At that time, the leadership
team recognized value in her passion and experience and offered her to
relocate to the new Plymouth, Michigan headquarters and continue her
role. Now, Beth works as Production Planner Lead.

Roberta Lyons began work in the Finance Department at a Draw-Tite®,


facility. Through showcasing her hard-working and can-do attitude, Roberta
worked her way into the role as the first female Plant-Supervisor at Draw-
Tite®! Over the years she has amassed experience in many different
departments within the Company, making her a valuable employee in the
Horizon Global network.

Kirk Hocker – 42 Years of Service!


Kirk started with Reese® working in the service center where he
installed many hitches and other products on customer vehicles. He
soon became the manager of the service center. During his years in
the service center, he gained breadth and depth of knowledge
regarding understand some of the Company’s products. During this
time, Kirk was fortunate enough to work with his father, Richard
Hocker, also a long-timer employee of Reese® (retired in 1990).
When the service center closed, Kirk moved into a technical service
role where he assisted many of our customers with product offerings.
Kirk held the role of Technical Service Manager for many years and
has since remained in the Technical Service Department where he continues to assist with customers
and the Company.
Burkhard Schmitz – 51 Years of Service!
Burkhard began with an apprenticeship in 1969 – at the age of 15! He learned
the business from scratch and became skilled in the manufacturing and
construction of tooling. In 2016, Westfalia® joined the Horizon Global family,
and Burkhard joined at the same time. For 30 years, Burkhard has been an active
member in workers council and represented the interests of his workmates,
shaping the culture of the Company. Burkhard has a wealth of knowledge and
significant professional experience, which he is always willing to share.

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Employee Training, Education, and Development


We believe professional training and development for our all employees fosters the achievement of
common business and organizational goals and creates opportunities for job development, growth,
and satisfaction. Educational Assistance, Professional Certifications, and Employee Development
are a few programs offered at Horizon.

In addition, mandatory training involving safety, anti-corruption, competition law, discrimination


and harassment, human rights, and other areas are conducted yearly. Our training focuses on our
commitment to act ethically and with the utmost integrity. Each of our leaders has pledged to:
• Demonstrate that business goals and profits never trump compliance with legal requirements
ethical principles.
• Inspire and talk with groups within our organization about the importance of acting ethically.
• Celebrate achievement by recognizing and rewarding employees whose behavior
exemplifies integrity and ethical choices.
• Encourage employees to speak up, including creating an environment where employees feel
comfortable raising concerns without any fear of retaliation or other negative consequences.
Talent Acquisition
Horizon Global is committed to attracting strong, diverse, and dedicated talent. In 2020, our
recruitment team continued to collaborate with hiring managers to find the best talent in the external
market, internal talent pool, and through employee referrals. We did this in a largely virtual
environment ensuring the health and safety of our employees, candidates, and new hires. In 2020,
our workforce grew by approximately 11% despite the global pandemic, including 25.3% of new
hires being women (on a global basis). In addition, we have an attractive student internship program,
offering students an opportunity for hands-on learning, to work with new people, and to explore
career opportunities.

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Performance and Career Development Reviews


Regular performance and career development are the foundation of employee retention,
advancement, and fulfillment. These reviews help us identify the strengths and weaknesses of
employees and help us ensure that the right people are in the right job – happy employees promote
a positive and happy workplace. In addition, regular performance reviews assist us in maintaining
and assessing each employee’s potential further growth and development.
We monitor and maintain the reviews by the first quarter of each fascial year, and, in 2020, we
conducted a performance review for every employee across the Americas and Europe.

Benefits at a Glance
Horizon Global emphasizes the importance for our employees to plan for their future and strike a
positive work-life balance. To achieve this, Horizon Global provides a flexible work environment
with market competitive compensation and benefits packages across the globe. For example, in the
Americas, we offer parental leave to all full-time employees. In the United States, this includes birth
of the employee’s child and care for the employee’s newborn child, as well as placement of a child
with the employee for adoption or foster care and to care for the newly placed child. In Mexico, in
addition to parental leave, we offer a childbirth allowance.
In the United States we offer, in addition to customary benefits, the following opportunities to
employees: Tuition Assistance, New Parent Leave, Bereavement, Health Insurance (dental, vision,
and health care plans), Short-Term and/or Long-Term Disability, Retirement Programs, Paid
Personal Time Off, and EPA – Employee Assistance Program (full-time employees).
Horizon Global takes an active role in our employee’s financial stability. We offer various financial
support opportunities to help our employees achieve their goals and plan for retirement. At present,
we have participation rates of 83.5% of employees in the USA and 100% in Canada and Mexico in
the employee retirement savings plans.
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Remote Work
As noted above, Horizon Global is encouraging and supporting all non-essential corporate
employees to work from home for the foreseeable future. For our corporate employees, remote work
arrangements provide several potential benefits to our employees, including, for example:
• greater flexibility in scheduling
• removal of commute stress
• location independence
• improved inclusivity – expanding the pool of candidates beyond a single location means the
potential for hiring diverse candidates from different socioeconomic, geographic, and
cultural backgrounds
• for working parents, improved ability to manage children and school
• money savings – decreased spending on commuting, maintenance, parking fees, lunches, etc.
• increased productivity, performance, and job satisfaction
• a happier, healthier work-life balance

DIVERSITY, EQUITY, AND INCLUSION


One of our Company mantra’s is – “It’s Always Day One”. This means that we do not rest on our
accomplishments but are always striving for continuous improvement. Employees are encouraged
to be innovative and creative, producing a work environment where passion drives us towards the
best results. We strive to approach our projects with an open mind so that we welcome progressive
ideas. True innovation and creativity demand variety of viewpoints.
Horizon Global’s diversified team and inclusive workplace help us to continue innovating, enhance
our culture, and positively impact our communities, customers, and stakeholders. We embrace and
foster mutual respect, open and honest communication, and diversity of thought, view, and people.
To create and appreciate diversity, we maintain an environment free from discrimination on the basis
of gender, age, race, color, religion, marital status, national origin, ancestry, veteran status, disability,
sexual orientation, gender identity, or any other status protected by law. We support equal
employment opportunity for all employees and applicants.
In addition, our work environment must be free from any form of intimidation or harassment. We
will not tolerate verbal or physical conduct by an employee, customer, or other non-employee that
harasses or disrupts another employee’s work performance or that creates an intimidating, offensive,
abusive or hostile work environment. We are committed to creating an environment that fosters
mutual trust and respect.

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Encouraging Women at Horizon


Women are in diverse roles throughout our organization, from Board Members, Engineers, and
Managers across different distribution centers, to Operations, HR, Finance, and Business, among
others. Facilities across the organization celebrate International Women’s Day to thank and
recognize the contributions they make to our business.

As of the date of this Report, in the United States, approximately 35% of our workforce is women,
which is above comparative averages for women in the manufacturing industry (generally around
29%). Additionally, over 22% of the Company’s Board of Directors are women (both of whom are
independent), 14% of the Company’s leadership team is women, and 23% of our global workforce
is women.
The ratio of basic salary and remuneration of women to men is shown below:
Region and Level Women:Men Region and Level Women:Men
(%) (%)
USA Director level 99.8 Germany – Rheda 94.8
Management
USA Manager level 100.7 Germany -Rheda Staff Level 101.7
USA Engineers 99.9 France Management 88
USA Professional level 104.5 France – Staff Level 96.6
USA Hourly level 101.5 Romania – Brasov 98
Mexico Manager level 84.0* UK – Deeside 106.2
Mexico Professional 92.3 South Africa 101.2
level
China 93.9
* Value is based upon Reynosa, Mexico electrical facility. * Overall variance is attributed to tenure and the pay premiums.

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Female Board Representation


Debra S. Oler is a member of our Board of Directors and Chair of our
Compensation Committee. Ms. Oler brings deep general management,
operational, and commercial experience to the Horizon Board. Ms. Oler
previously held roles of increasing responsibility with Grainger, including
vice president sales from 2004 to 2009 and vice president/general manager
from 2009 to September 2014. Prior to joining Grainger, Ms. Oler gained
extensive sales and leadership experience with Alliant FoodService, Inc.,
a broad-line foodservice distributor, distributing dairy products, seafood,
and Italian product lines, from 1996 to 2002, and with Kraft Foods, a
multinational confectionery, food, and beverage manufacturing and
processing conglomerate, from 1986 to 1996. Ms. Oler currently serves on the board of directors of
Pool Corporation, a position she has held since October 30, 2018. Ms. Oler also currently serves on
the board of TA NIPA Parent LP (Omnia Partners), a private equity-backed group purchasing and
supply chain organization, consisting of public sector and private sector divisions, a position she has
held since December 1, 2020.
Donna M. Costello is a member of our Board of Directors and the
Board’s Audit Committee. Ms. Costello has extensive experience as
both a public company executive and board member, with deep
financial expertise and a proven track record as a strategic business
leader across multiple industries. Ms. Costello previously served as
Chief Financial Officer of C&D Technologies (“C&D”), a
manufacturer and marketer of systems for power conversion and
storage of electrical power, from 2016 to 2020. Prior to joining C&D,
Ms. Costello served as Chief Financial Officer of Sequa Corporation,
a diversified organization with businesses across the aerospace,
automotive, energy, and metals industries, from 2008 to 2015.
Ms. Costello currently serves as a director of CTS Corporation, a manufacturer of sensors, actuators,
and electronic components for a wide range of industries, where she serves on both the
Compensation and Audit Committees. Ms. Costello also serves as a director and member of the
Audit Committee of Neenah, Inc., a global specialty materials producer of performance-based
products, and provider of fine paper and packaging products worldwide.
Women @ Horizon
In addition, our “Women @ Horizon” council creates and
fosters a positive environment that empowers women across the
globe. This council works with global leadership and cross-
functional teams to, among other things, create opportunities
for the advancement and elevation of women, provide programs
for the engagement and fulfillment of women, represent and
foster inclusion of a diverse group of women through effective
communication, and support initiatives to drive achievement of Horizon Global’s strategic goals.

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COMMITMENT TO ETHICS
Ethics Hotline
Horizon Global is committed to an open and honest work
environment. We encourage our employees to speak up, and we
provide the resources to do so. We have a designated Ethics Hotline
reporting system, within our Human Resources department, where
any information given is confidential and anonymous and allows
employees to report concerns of misconduct by the Company, its
leadership, other employees, or agents.
Horizon Global tracks and reviews all claims of misconduct—whether made to the Ethics Hotline
or through some other channel. As appropriate, Horizon Global follows up with individuals who
submit concerns anonymously, while preserving the reporter's anonymity. Our leadership
investigates and remediates each and every anonymous allegation.
In 2020, we received 22 calls to our Ethics Hotline, all of which were promptly investigated and
addressed, and corrective or disciplinary action was taken where appropriate. An independent third-
party administers the Ethics Hotline and an internal cross-functional committee oversees the Ethics
Hotline process.
Freedom of Association
Horizon Global supports and respects its employees’ freedom of association in all countries and
complies with our obligation to satisfy all local labor laws and regulations. As of December 31,
2020, we employed approximately 4,000 people, of which approximately 12% were in the United
States (none of which are covered by collective bargaining agreement). None of our employees in
Europe-Africa are covered by a collective bargaining agreement. In the Americas – at both of
our Reynosa, Mexico facilities, over 80% of employees are covered by collective bargaining
agreement; at Mississauga, Canada, over 55% of our employees are covered by collective
bargaining agreement; and in Itaquaquecetuba, Sao Paulo, Brazil1, over 65% of our employees
were covered by collective bargaining agreement. Our relationships with labor unions are generally
healthy and stable business partnerships. We have worked collaboratively with our union
partners to realize increases in performance and with a constant eye towards respect for
employees and their bargaining representatives.
In addition, we work closely with our employees and labor union partners to promptly communicate
any operational changes at affected facilities.

1
The Brazilian operation was sold in the Second Quarter of 2021.

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EMPLOYEE HEALTH & SAFETY


Safety of Employees
The health and safety of our employees is a top priority.
Every day, we strive to ensure all individuals feel
comfortable and safe in their work environments. To
ensure high safety standards, Horizon has established that
most of our facilities are certified to ISO 45001
Occupational Health and Safety. We also conduct internal
auditing to monitor our health and safety practices,
alongside a designated team heading employee safety
protocols and performance training. In compliance with
the rules of the countries where we operate, Horizon
Global has developed a health and safety program to
address potential areas of concern, as well as a training
and management system to ensure people’s safety in their
daily operations, monitor their application, measure
effectiveness, and reduce accidents and incidents at work.
Employee Training on Health and Safety
In addition to an organization-wide commitment to health
and safety, each facility has a team dedicated to managing
health and safety, implementing training, and providing
continuous improvement programs.
Safe Walk Areas
For the safety of all employees, each facility has
designated areas, marked with yellow and black lines,
where only employees with specific instruction and
clearance are permitted to cross.

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Horizon Global tracks TCIR (Total Case Incident Rate) & DART (Days Away, Restricted or
Transferred Rate). Each of these has been steadily decreasing since 2018, even though production
has been increasing.

TCIR - DART 2020


12

10

0
America Europe Africa

TCIR DART

Americas 2018-2020 TCIR-DART


6

0
TCIR DART

2018 2019 2020

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Enhancing Facilities with Lean Manufacturing Improvements


Horizon Global began implementing sustainable lean manufacturing improvements at some of our
facilities. Examples below are being enacted across our facilities globally. These improvement
activities cause a reduction in waste and create more usable floor space, leading to a safer and more
productive and organized facility. We also improved our machine safety labels and added floor
markings to communicate safety measures to employees working near the machines. Not only does
this increase safety, but it also provides a cleaner and more hygienic environment for employees.

Lean manufacturing enhancements at our manufacturing facilities


Rheda, Germany Manufacturing Facility

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Sanitary Security Protocol Compliance with IMSS Standard


Our Reynosa, Mexico Electrical facility has passed the Sanitary
Security Protocol, which was carried out in accordance with the
standard established
by IMSS – Social
Security Agency,
Government
Dependency. This
includes an emphasis
on proper health in
the wake of global
health concerns.
Active Breaks at Work
Our Reynosa, Mexico
Electrical facility has
initiated a great idea of
incorporating active breaks.
This is a short break where
the employees can do
stretching or exercises to
relax.
Covid-19
The COVID-19 pandemic has represented enormous challenges for employees, their families, and
the communities in which we work. As part of our commitment to employee safety, the Company’s
response has included, without limitation:
• Requiring administrative and non-essential employees to work remotely
• Requiring social distancing for essential on-site employees
• Temporarily eliminating travel
• Professionally sanitizing our facilities on a regular basis
• Providing and requiring use of PPE
• Implementing gating measures at facility entrances
• Fully-flexed all non-essential personnel throughout Europe
• No mandatory furloughs or layoffs in U.S.

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CONTINUOUS IMPROVEMENT
At Horizon Global, we believe consistent and sustainable improvements are critical for the continued
success of our organization, as well for increased job satisfaction and the health and safety our
employees and customers. In 2020, we developed and implemented numerous improvements across
our facilities and businesses towards these ends.
Improvements at Facilities Using 5S Methodology
In February 2020 we began
implementation of the 5S
methodology across the
globe, a set of five
organization practices that
function cohesively to
promote workplace efficiency
and abnormality detection.
The 5S methodology focuses
on eliminating disorder to
foster a safe, clean, and
efficient work environment.
Workplace efficiency creates
greater productivity with the
use of fewer scarce resources. Evidence of these improvements can be seen in the data as we
recorded zero accidents at five of our facilities in the Americas and three of our facilities in Europe-
Africa.
To ensure all operators, engineers, and supervisors are aware of the 5S methodology and so that each
team member feels confident in exercising the 5S foundations, continuous trainings are conducted
across multiple facilities.
Two exceptional examples for 5S implementation are at our Reynosa, Mexico Metals and Brasov,
Romania facilities.

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Process Improvements
Horizon Global is committed to continuous improvement. Various recently-implemented process
improvements allow us to better utilize our capital resources, reduce waste, minimize variability,
and increase efficiency in the workplace. For example, at our Reynosa, Mexico Metals facility,
process improvements, including a Quality Lab addition, resulted in a strategic area for material
cutting, polishing, and etching and improved overall effectiveness and workplace ergonomics.
In addition, to further encourage and support safe working practices, we have additional training
programs. The Reynosa, Mexico Metals facility conducted training for new machine operation
techniques that emphasize safety precautions, driving the production of sustainable, high-quality
products.

Additionally, a major facility re-organization, including integration of an external warehouse at the


Reynosa, Mexico Metals facility, improved efficiency, floor space utilization, and production
throughput dramatically. The improvements in process flow led to an increase in production
capabilities (e.g., hitch production average per day increased 34% from 2019 to 2020). The improved
efficiency led to a reduction in resources required per unit of production, paving the way for more
environmentally conscious work processes.

These improvements (especially at our Reynosa, Mexico Metals facility) were evaluated for impact
by cross-functional representatives.

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Communication and Information Sharing


As an organization, we believe each day provides a new opportunity for improvements – “It's Always
Day One!” One such improvement is transforming our ERP system from CMS to SAP. 2020 was a
milestone year as this program officially launched. The goal is full-scale launch and implementation
of this tool by the first quarter of 2022 in North America, leading to a significant improvement in
the way our business operates and creating greater workplace efficiencies.

In addition, we launched Enterproj, which is cloud-based Enterprise Business Management system


utilized for overseeing all projects and programs, allowing leadership and employees to have up-to-
date status reporting on key metrics. This tool allows for increased collaboration of cross-functional
teams and information globally. With this tool, key information is visible to everyone at the same
time across the Company. Not only does Enterproj lead to increased communication and
transparency and improve our timing to market, but it also removes certain mundane tasks from
employees’ daily duties, helping them develop and broaden their skill sets, creating greater employee
satisfaction, and promoting career development.

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COMMUNITY ENGAGEMENT
In addition to our commitment to improving the health, well-being, and success of our employees,
we are dedicated to improving lives in the communities where our employees and other stakeholders
LIVE, WORK, AND PLAY.
Helping Hand for Students and Parents – Engagement with Varsity Tutors
Due to the pandemic, many students were not able to engage with their teachers in person. We
identified this as a challenge for both our employees and their children as work and schooling
transitioned to online formats. To alleviate the stress caused by this transition, Horizon Global
partnered with Varsity Tutors, a virtual service that offers one-on-one or group tutoring services
for students who need additional educational attention. The services benefited many of our
employees’ children who are anywhere from kindergarten to college, as well as our employees who
were looking for certification coaching like PMP, CPA, and other professional certifications.
Adopt A Family
The COVID-19 pandemic has altered many lives around the globe, often impacting a family’s
financial security. As an organization, we wanted to support families in the communities nearby. We
gave our Horizon team this opportunity by partnering with Volunteers of America of Michigan
and participating in the Adopt a Family 2020 Campaign. We donated to the families in three ways:
1. Gifts from Amazon
2. A one-time monetary donation
3. Adopt one family and support them with the help of Volunteers of America of Michigan

Helping Hand to Our Neighbors at Essential Times


Our Reynosa, Mexico Metals team proved that we will be there when our neighbors need us most.
In September 2020, there was a large-scale fire accident in a neighboring manufacturing facility and
our Horizon Global team was there to help. We immediately opened our doors to those affected to
provide shelter, safety, an ability to reach out to family members, and additional needed resources.

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Memberships and Organizations


Horizon Global, its businesses, and its team members belong to numerous professional organizations
and industry associations, including, for example:

Memberships and Organizations


1. International Automotive Taskforce (IATF)
2. International Organization for Standardization (ISO)
3. Automotive Industry Action Group (AIAG)
4. Information Handling Services (IHS)
5. American Society for Quality (ASQ)
6. Original Equipment Suppliers Association (OESA)
7. Automotive Aftermarket Association (AASA)
8. RV Industry Association (RVIA)
9. National RV Dealer Association (RVDA)
10. National Marine Distributor Association (NMDA)
11. National Marine Distributor Association (PRVCA)
12. North American Trailer Dealers Association (NATDA)
13. Autocare Association
14. Autonews
15. National Marine Manufacturers Association (NMMA)
16. Specialty Equipment Aftermarket Association (SEMA)

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SUPPLY CHAIN
SUSTAINABILITY

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ETHICAL SOURCING
We strive for a sustainable and responsible supply chain by working with our business partners to
find ethical solutions to global social and ecological challenges. To meet our customers’ demands
and deliver best-in-class, innovative products, we collaborate with our supply chain partners to
promote human rights, fair labor practices, environmental progress, ethical business practices, and
anti-corruption policies.
At a high-level, our suppliers must adhere to the minimum principles below:

1. Ethical Labor Standards


2. No Forced Labor
3. Working Hours and
Overtime, Wages
4. No Child Labor
5. Health & Safety,
Environmental Practices
6. No Conflict Minerals
7. Ethical Business Practices,
including:
a. Anti-Corruption
b. Fair Trade Practices
c. Horizon Policies and
Procedures

Per our 2020 Corporate Risk Analysis, our supply chain did not report any negative social impact
incidents.

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Commitment to Source Locally


To support local businesses and the
Nearly 50% procurement from local suppliers
communities in which we LIVE,
WORK, AND PLAY, our manufacturing
facilities and warehouses strive to source from the same region in which the facility is located. All
our manufacturing facilities, across the globe, and warehouses in the United States, have more than
50% procurement from these local suppliers.
Ethical Labor Standards – Human Rights Risks
Horizon Global recognizes the importance of Human Rights issues and risks in the supply chain,
identifying the “Salient Human Rights Issues” as per the United Nations Guiding Principles (Protect,
Respect, Remedy). We uphold ethical behavior of both direct and indirect suppliers, particularly
around issues such as child labor, forced or slave labor, abusive treatment, or corrupt business
practices. In addition to the requirements set forth in the Supplier Acknowledgement (above),
Horizon Global is working on implementing a robust, comprehensive Human Rights Policy, with a
goal of publishing in late 2021. The goals of that policy are in line with our Supplier
Acknowledgment and also include requiring our suppliers to comply with such policy or risk loss of
business for failure to comply.
Conflict Minerals
Human rights and labor issues have
been topics of increasing attention,
giving rise to questions from various
stakeholders about social
responsibility initiatives throughout
supply chains. Manufactures are
expected to exercise social
responsibility especially in the areas
of raw material procurement and
product manufacture.
The United Stated enacted laws due to concerns that the exploitation and trade of conflict minerals
by armed groups is helping to finance conflict in certain regions (e.g., The Democratic Republic of
Congo) and is contributing to an emergency humanitarian crisis. Gold, Tin, Tungsten, and Tantalum
(3TG) are included in Conflict Minerals under applicable U.S. law.
These minerals are subjected to The U.S. Securities and Exchange Commission (“SEC”) for
implementation of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act. As per this law, the manufacturer needs to report when any manufactured products contain 3TG.
Horizon Global does not source any Conflict Minerals and refuses to engage with suppliers known
to be sourcing Conflict Minerals. Our supply chain has a standard system in reporting Conflict
Minerals. This includes a third-party audit to verify supplier declarations about the use of any 3TG
in their supply chain. Any material inputs of concern are reported directly to the leadership team.

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Anti-Corruption
At Horizon Global, we are committed to gaining business
based on our merits, including the quality of our products
and services, and we do not tolerate bribes or other corrupt
practices. We have a Global Anti-Corruption Policy
which applies to all employees, Board members, and
officers, as well as all third-party agencies or vendors.
This policy complies with the U.S. Foreign Corrupt
Practices Act and all other local and/or applicable laws.
This policy is communicated and accessible to all
employees on the internal website, is on our public
website, and a copy is provided to those with whom we
do business.
In 2020, we did not have any known incidents of
corruption at any of our facilities or within our supply
chain.
PRODUCT QUALITY & SAFETY
Delivering safe, quality products is of utmost importance to Horizon Global. Quality guides our day-
to-day actions, and we strive for continuous improvements – It’s Always Day One!
We are an industry-wide leader in safe, quality products, and we work closely with our supply chain
to achieve this.

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Standards Implementation
Many of our facilities have been certified by a third party to industry standard accreditation, such as,
ISO 14001 (Environmental), ISO 45001 (Health & Safety), ISO 50001 (Energy), ISO 9001
(Manufacturing), and IATF 16949 (Automotive specific) as well as many others. These standards
help organizations develop and implement policies and procedures necessary in meeting customer
requirements for products and services and ensuring quality and consistency. These certifications
demonstrate that we are consistent with our processes. Training to these standards – including
Quality Management System (QMS), Environmental Management System (EMS), and
Occupational Health & Safety (OH&S) – is part of the yearly revalidation requirements.

Customer Health and Safety


The core of quality is safety. And, to ensure our
products are safe for usage and in compliance with
guidelines, we monitor and track all material (in
Chemical Reporting which includes REACH,
RoHS, Prop 65, SoC, IMDS, TSCA., etc.). If
required, we provide declarations of these
materials to our customers and include necessary
safe handling instructions.
In the year 2020, we had no material incidents of
non-compliance regarding the health and safety
impacts of our products.

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Marketing and Labelling


We design our labels, and what to disclose on them, based on our customer requirements, legal
standards, and safe handling. For our aftermarket products, we reference to what standard the testing
was done and for some product categories, we include a specific compliance statement for Prop-65.
In 2020, we did not have any incidents of non-compliance regarding our product and service
information or labeling and marketing communications.

Employees Training on Best Work Practices


Employee training was conducted across multiple facilities including topics such as workplace
safety, quality, 5S and continuous improvements. Focusing on these areas will lead to enhanced
ergonomics and safety, improved quality, waste reduction, and a decrease in rework.

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Supply Chain Safety Standards


For Horizon Global to assess our supply chain partners and work towards continuous improvement,
transparency and accountability go hand in hand. With sustainable process improvement at the
forefront, as well as strategy development for quality, we provide our suppliers with proper
communication so that they can understand our requirements.
1. Communication with Suppliers:
Purchasing and Quality departments ensure
proper communication of requirements and
standards are conveyed to suppliers before
procurement.
2. Supplier Assessment (Qualification,
Social and Technical Requirements):
The Supplier Quality and Purchasing team
ensures that a screening is performed
before onboarding a new supplier. Upon
meeting the technical requirements, social
and minimum qualifications, as per our
Supplier Quality Manual, the business is awarded.
3. Auditing Suppliers:
Suppliers are audited on a regular schedule by our Supplier Quality Engineering teams. All
auditors are third-party certified to perform these tasks to meet all requirements (industry
standards, customer-specific requirements, and applicable laws) to ensure compliance.
Adherence to Horizon Global policies and requirements is covered during each audit.
Further, to provide consistency with our partners:
1. Suppliers are encouraged to be ISO 9001
certified and are required to implement a QMS
(Quality Management System).
2. We encourage and recommend that our suppliers
maintain external EMS ISO 14001 certification.
As a result of these collaborative efforts, we
remained stable with no major changes in the organization operations and/or our supply chain.

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INFORMATION SECURITY
Customer Privacy
We rely upon information technology systems and networked products in our business operations to
store, process, share, and transmit electronic information. These activities are necessary to manage
and support a variety of our business processes. Additionally, we collect and store sensitive data of
our employees, customers, and suppliers. State-of-the art, robust privacy policies and procedures are
critical to protecting our business and our stakeholders.
Identifying Risks
Our newly formed Compliance Council is focused on, and committed to, reducing cybersecurity
risks. This Council works closely with our Board of Directors – two members of which possess
Information Security expertise – to create a roadmap for best practices and mitigate risks.
A data breach of any nature is a concern to our Company and our customers. We engage in industry
best practices to protect against instances of data corruption and/or privacy violation. Horizon Global
never engages in the sale of customer information to third-party services. Further, to protect our data
from outside threats, our employees communicate using encrypted networks and access their
technology through a multi-stage login process. In addition, we are working closely with the security
research community to establish innovative best practices to combat the increasing global threat of
data breaches and ransomware attacks.
Independent third-parties (as of as of 2020, Deloitte and Ernst and Young) reviewed and validated
routine Security Operations Center Compliance; no material weaknesses were identified, and any
identified deficiencies were communicated to those charged with governance as required.
To protect Company data assets and intellectual property, Horizon Global engages in employee
information security training. IT Security Managers conduct routine training with users to highlight
core topics of relevance. As part of the training, we conduct a monthly anti-phishing campaign to
ensure our employees are prepared to act appropriately on harmful spam/phishing emails. We also
attempt to simplify our supply chain by providing employees only with data that is necessary to
perform their operations. To provide an extra layer of protection, many employees sign non-
disclosure agreements during the onboarding process. Additionally, all employees are aware that in
the event/incident of an endogenous data breach or privacy violation, the responsible party(ies) are
to face full-scale investigation by the Board of Directors and potential termination. Finally, the
Company has purchased a Cybersecurity Security insurance policy to cover both first and third-party
financial losses resulting from data breaches and other cybercrimes that may compromise sensitive
Company or customer information.
Data Integrity
No known incidents regarding a loss of data and/or Information Security breaches were identified,
in the last three years (i.e., 2018, 2019, and 2020).

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STAKEHOLDER ENGAGEMENT
Interaction with our stakeholders at different
intervals is essential to improve our business
processes, community involvement, and ESG
efforts, and, as a result, we have implemented a
variety of tools to foster this communication. Any
concerns raised by the stakeholders are discussed
during our weekly “Voice of Customer” meetings
with cross-functional team leads (including
engineers).

Stakeholder Feedback/Engagement Tools and Communication Frequency


1. Customers, Customer Scorecards, phone calls, emails, website forms, weekly
End-Users meetings with OEM customers, and chats where the representatives
communicate daily with many customers based on their need are
open to end-users.
2. Suppliers Horizon Quality Team monthly meetings and Scorecards are issued
to evaluate supplier performance.
3. Horizon Townhall meetings are held a minimum of once a quarter, where
Team employees may express their concerns or queries. Monthly surveys
are also conducted on various topics.
4. Management Management review is done monthly with different department
leaders to communicate the progress of various projects.
5. Accreditation Periodic external audits, which are conducted by third-party
Bodies companies annually, help to communicate our accreditation status.

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GOVERNANCE

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OUR BOARD OF DIRECTORS


Our Board of Directors consists of nine individuals, including two women. The Board oversees and
provides guidance regarding the Company’s business and affairs and is the ultimate decision-making
body of the Company, except for those matters specifically reserved to shareholders. Our Board of
Directors is actively engaged in developing, and implementing, the Company’s strategic plan. The
Board is committed to best-in-class corporate governance structures and policies that enable the
Company to operate responsibly and with integrity, execute our strategic plan, sustain our success,
and build long-term shareholder value.
Our Board of Directors was reconstituted in April 2019, with six new members appointed to help
drive Horizon Global’s turnaround. Our Board composition has continued to evolve as we endeavor
to attract and retain first-rate leaders to guide management through current, unprecedented
macroeconomic conditions and deliver value to our shareholders and other stakeholders in a
responsible and ethical manner.
This nine-member body, including six independent Board members, meets at least four times a year.
The Board has adopted governance structures and policies that promote Board independence and the
interests of shareholders. These structures and policies include, among others:
• Separated the roles of Chief Executive Officer and Board Chair in February 2018 to curtail
potential or perceived conflicts of interest and facilitate objective Board evaluation of
Horizon Global’s management.
• Declassified Board structure in June 2019 to increase accountability to shareholders.
o All Board members are required to sit for reelection on an annual basis.
• Board consists of nine Directors.
o Six of our Directors are independent in accordance with New York Stock Exchange
(NYSE) listing standards and our Corporate Governance Guidelines, available at
www.horizonglobal.com.
o All Directors are independent of the influence of any particular shareholder or
shareholder groups whose interests may diverge from the interests of shareholders as
a whole.
• Board guided by Corporate Governance Guidelines.
o Reviewed and confirmed on an annual basis for compliance with NYSE and SEC
rules and regulations, all other applicable laws, and market best practices.
• Annual review of Board leadership structure by independent Directors.

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During 2020, our Board held 10 meetings, and all of the then-current Directors attended at least
75%, in the aggregate, of the meetings of the Board and all Committees of the Board on which they
served. All Directors are expected to attend all meetings, as well as the Annual Meeting. In addition
to attending Board and Committee meetings, Directors fulfill their responsibilities by consulting
with the Chief Executive Officer and other members of management on matters that affect the
Company.
The Board has three permanent committees, including the Audit Committee, the Corporate
Governance and Nominations Committee, and the Compensation Committee.
Each of these Committees is composed entirely of independent Directors and has a written charter
defining its purpose, authority, and duties. The Committees enhance the Board’s oversight of areas
that are critical to our corporate responsibility and sustainability efforts, including: transparent and
reliable financial reporting, risk identification and mitigation, ethics and compliance, diversity,
equity, and inclusion, Board and management succession planning, shareholder proposals, supply
chain sustainability, and climate change. In particular, the Governance Committees takes lead
responsibility for overseeing ESG activities (i.e., risks, opportunities, practices, and disclosures).
Board Committees are guided by Committee Charters, available at www.horizonglobal.com
RISK MANAGEMENT
The Board has the overall responsibility for risk oversight, with a focus on the most significant risks
facing the Company. When granting authority to management, approving strategies, and receiving
management reports, the Board considers, among other things, the risks, and vulnerabilities the
Company faces. The Audit Committee considers risk issues associated with the Company’s overall
financial reporting, disclosure process, and legal compliance, as well as reviews policies on risk
control assessment and accounting risk exposure. In addition to its regularly scheduled meetings, the
Audit Committee meets with our internal auditor, Ernst & Young, in executive sessions following
each quarterly meeting, and with the General Counsel and Chief Compliance Officer as determined
from time to time by the Audit Committee. Each Audit Committee member is financially literate,
and each of Mr. Henderson and Ms. Costello qualifies as an “Audit Committee financial expert”
within the meaning of SEC regulations. Each of the Compensation Committee and the Corporate
Governance and Nominations Committee considers risk issues associated with the substantive
matters addressed by each such Committee.
The Board believes that its structure for risk oversight provides for open communication between
management and the Board and its Committees. As an organization, we investigate all the functions
or activities from a risk standpoint. We distinguish the types of risk we encounter as external and
internal risks. Understanding and planning for mitigation is also a part of our overall Corporate
Compliance program, and for that we have appointed a Compliance Council and implemented a Risk
Escalation Policy.

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DOCUMENT MAPPING

Brief Description Located in this


report or status
Name of the organization Pg:6
Activities, brands, products, and services Pg:6

Location of headquarters Pg:6


Location of operations Pg:6
Ownership and legal form Pg:6

Markets served Pg:5-6


The scale of the organization Pg:28
Information on employees and other workers Pg:5, 20-30
Supply chain Pg:38-46
Significant changes to the organization and its supply chain None
Membership of associations Pg:37
Statement from senior decision-maker Pg:5
Values, principles, standards, and norms of behavior Pg:8
Mechanisms for advice and concerns about ethics Pg:28
Governance structure Pg:47-49
Definitive Proxy Statement
Delegating authority on Schedule 14A
Definitive Proxy Statement
Executive-level responsibility for economic, environmental, and social topics on Schedule 14A
Definitive Proxy Statement
Consulting stakeholders on economic, environmental, and social topics on Schedule 14A
Definitive Proxy Statement
Composition of the highest governance body and its committees on Schedule 14A
Definitive Proxy Statement
Chair of the highest governance body on Schedule 14A
Nominating and selecting the highest governance Definitive Proxy Statement
body on Schedule 14A
Definitive Proxy Statement
Conflicts of interest on Schedule 14A
Role of highest governance body in setting purpose, Definitive Proxy Statement
values, and strategy on Schedule 14A

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Horizon Global – Sustainability Report

Definitive Proxy Statement


Collective knowledge of highest governance body on Schedule 14A
Evaluating the highest governance body’s Definitive Proxy Statement
performance on Schedule 14A
Definitive Proxy Statement
Identifying and managing economic, environmental, and social impacts on Schedule 14A
Definitive Proxy Statement
Effectiveness of risk management processes on Schedule 14A
Definitive Proxy Statement
Review of economic, environmental, and social topics on Schedule 14A
Highest governance body’s role in sustainability Definitive Proxy Statement
reporting on Schedule 14A
Definitive Proxy Statement
Communicating critical concerns on Schedule 14A
Definitive Proxy Statement
Nature and total number of critical concerns on Schedule 14A
Definitive Proxy Statement
Remuneration policies on Schedule 14A
Definitive Proxy Statement
Process for determining remuneration on Schedule 14A
Definitive Proxy Statement
Stakeholders’ involvement in remuneration on Schedule 14A
Definitive Proxy Statement
Annual total compensation ratio on Schedule 14A
Percentage increase in annual total compensation Definitive Proxy Statement
ratio on Schedule 14A
List of stakeholder groups Pg:46
Collective bargaining agreements Pg:28
Identifying and selecting stakeholders & engagement Pg:46
Key topics and concerns raised Pg:46
Approach to stakeholder engagement Pg:46
Entities included in the consolidated financial statements Definitive Proxy Statement
on Schedule 14A
Defining report content and topic Boundaries Yes

List of material topics Yes


Changes in reporting None
Restatements of information Not Applicable to this report

Reporting period Pg:54

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Date of most recent report Pg:54


Reporting cycle Pg:54
Contact point for questions regarding the report Pg:54
Content index Pg:50-53, 2-3
Explanation of the material topic and its Boundary Pg:10
The management approach and its components Across The Report
Evaluation of the management approach Across The Report
Direct economic value generated and distributed Annual Report on Form 10-K
Defined benefit plan obligations and other retirement plans Annual Report on Form 10-K
Financial assistance received from government Annual Report on Form 10-K
Infrastructure investments and services supported Annual Report on Form 10-K
Significant indirect economic impacts No Impacts
Proportion of spending on local suppliers Pg:40
Communication and training about anti-corruption policies and procedures Pg:41
Confirmed incidents of corruption and actions taken None
Legal actions for anti-competitive behavior, anti-trust,
None
and monopoly practices
Energy consumption within the organization Pg:16-17
Reduction of energy consumption Pg:16-17
Water withdrawal Pg:18
Water discharge Pg:18
Water consumption Pg:18
Energy indirect (Scope 2) GHG emissions Pg:15
Reduction of GHG emissions Pg:15
Non-compliance with environmental laws and regulations Pg:13

New suppliers that were screened using environmental criteria Pg:44


Benefits provided to full-time employees that are not provided to temporary or
Pg:24
part-time employees
Parental leave Pg:24
Minimum notice periods regarding operational changes Pg:28
Types of injury and rates of injury, occupational diseases, lost days, and
Pg:30
absenteeism, and number of work-related fatalities
Programs for upgrading employee skills and transition assistance programs Pg:23

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Percentage of employees receiving regular performance and career


Pg:24
development reviews
Ratio of basic salary and remuneration of women to men Pg:26
Incidents of discrimination and corrective actions taken No incidents reported
Incidents of violations involving rights of indigenous peoples No incidents reported
Operations that have been subject to human rights reviews or impact
None
assessments
New suppliers that were screened using social criteria Pg:44
Negative social impacts in the supply chain and actions taken None
Political Contributions None
Assessment of the health and safety impacts of product and service categories Pg:44
Incidents of non-compliance concerning the health and safety impacts of
None
products and services
Requirements for product and service information and labeling Pg:43
Incidents of non-compliance concerning product and service information and
None
labeling
Incidents of non-compliance concerning marketing communications None
Substantiated complaints concerning breaches of customer privacy and losses
None
of customer data
Claims of reporting according with GRI standards This report references the GRI
Standards but has not been
prepared to a specific GRI in-
accordance level.

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ABOUT THIS REPORT


Reporting Scope and Standards Applied
This publication is inclined towards the most recognized reporting standard, and this is a Non –
Financial reporting.
Reporting Period
The reporting in this document refers to the performance of Horizon Global in terms of sustainability
for the year 2020, unless otherwise indicated.
We have included data from 2021, as well as 2018 and 2019 for a comparison of our performance.
Date of the Most Recent Report
This Report, which covers the fiscal year ending December 31, 2020, is published on July 21, 2021.
The previous report was published in September 2020.
Reporting Cycle
Primary report will be issued in March (annually) with an updated report (if necessary) issued in the
fourth quarter.
Accessibility of This Report
Our Sustainability Report will be available to the stakeholders and public. It can also be downloaded
from our corporate website from Corporate Governance.
Contact
For questions or suggestions on this report, you can write to

corpcomm@horizonglobal.com, Ph:734-656-3000, 47912 Halyard Dr Suite 100, Plymouth,


Michigan 48170.

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SAFE HARBOR STATEMENT


This Report may contain “forward-looking statements” as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements contained herein speak only as of the date they are
made and give our current expectations or forecasts of future events. These forward-looking
statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,”
“estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or
other comparable words, or by discussions of strategy that may involve risks and uncertainties. These
forward-looking statements are subject to numerous assumptions, risks and uncertainties which
could materially affect our business, financial condition or future results including, but not limited
to, risks and uncertainties with respect to: the impact of the novel coronavirus (“COVID-19”)
pandemic on the Company’s business, results of operations, financial condition and liquidity; the
Company’s ability to maintain compliance with the New York Stock Exchange’s continued listing
standards; the Company’s debt, including the Company’s ability to comply with the applicable
financial covenants related thereto; liabilities and restrictions imposed by the Company’s debt
instruments; market demand; competitive factors; supply constraints; material and energy costs;
technology factors; litigation; government and regulatory actions including the impact of any tariffs,
quotas, or surcharges; the Company’s accounting policies; future trends; general economic and
currency conditions; various conditions specific to the Company’s business and industry; the success
of the Company’s action plan, including the actual amount of savings and timing thereof; the success
of the Company’s business improvement initiatives in Europe-Africa, including the amount of
savings and timing thereof; the Company’s exposure to product liability claims from customers and
end users, and the costs associated therewith; the Company’s ability to meet its covenants in the
agreements governing its debt; factors affecting the Company’s business that are outside of its
control, including natural disasters, pandemics, including the current COVID-19 pandemic,
accidents and governmental actions; and other risks that are discussed in the Company’s most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
The risks described herein are not the only risks facing our Company. Additional risks and
uncertainties not currently known to us or that we currently deemed to be immaterial also may
materially adversely affect our business, financial position, and results of operations or cash flows.
We caution readers not to place undue reliance on such statements, which speak only as of the date
hereof. We do not undertake any obligation to review or confirm analysts' expectations or estimates
or to release publicly any revisions to any forward-looking statement to reflect events or
circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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